Complete Guide to GTC Orders: Why Traders Are Using It

What is a GTC order?

A GTC (Good Till Cancelled) order is a “good forever order”—you set a target price, and the exchange automatically waits until that price appears for the transaction to occur. Unlike day orders (which expire if not executed on the same day), GTC orders can remain active across multiple trading days or even weeks.

Core Features:

• Automatically executed, no need to place orders manually every day
• Usually expires automatically after 30-90 days (to prevent zombie orders )
• Suitable for traders who have a clear target price but do not want to monitor the market constantly.

How to Use in Practical Scenarios

Scenario 1: Bottom Buying The current price of a certain stock is $55, and you believe it is overvalued, with a true value of $50. Instead of checking the market every day, it's better to place a GTC buy order at $50—when the price drops to that level, it will be executed automatically, allowing you to easily wait for the opportunity.

Scenario 2: Take Profit You hold a stock priced at $80 and want to sell it at $90 to lock in profits. After setting a GTC sell order, the stock will automatically execute when it rises to $90, and you won't need to watch the screen at all.

The Hidden Risks of GTC Orders

Although convenient, this “automation” also hides traps:

1. Price Flash Crash: The market fluctuates suddenly, and GTC buy orders may be triggered before the stock price continues to fall - originally intending to buy at $50, but it dropped to $45 . 2. Gap Risk: The most lethal. For example, if a stock closed at $60 yesterday, and major news overnight causes it to open directly at $50 today, your sell order at $58 may be executed at $50 or even lower.

3. Forget Its Existence: If you change your strategy but do not cancel old orders, it may suddenly be executed without your knowledge, which might not align with the current market environment.

Defense Plan: Regularly check orders + Use stop-loss orders + Do not set an excessively long validity period

GTC vs Intraday Orders: How to Choose

Selection Logic: Want to buy a stock at the bottom, with a clear target price that may be achieved within a few days → GTC; Expecting a clear rise or fall in the short term → Day Order

Bottom Line

The biggest advantage of GTC orders is automated waiting—no need to watch the market, no need to place orders every day. However, the prerequisite is that you need to understand its risks (gaps, flash crashes, forgetting its existence) and regularly maintain your order list. For traders with clear target prices in the medium to long term, this tool can save a lot of time.